Alibaba announces climate goals to reassure investors

Date:

Hong Kong-

Alibaba Group Holding Ltd

Baba 2.04%

We promised to be carbon-neutral in our business by 2030 and also clarified our environmental sustainability goals, so we aimed to reassure investors with an annual Investor Day presentation.

Alibaba, one of China’s most iconic companies, has tackled a mountain of challenges over the past year. The surge in regulatory action has cut off the wings of the once soaring e-commerce giant, its fintech affiliate Ant Group Co., and the founder of billionaire Jack Ma. Greatly retreated from the spotlight.. As competition intensifies, platform growth is slowing.

Alibaba shares on the New York Stock Exchange are down about 50% compared to last year. The company was fined a record antitrust in April for what regulators described as an internet giant abusing its position in its dominant market.

At Friday’s annual Investor Day presentation, Alibaba executives sought to reassure investors to overcome the short-term challenges they face.

Maggie Wu, Alibaba’s Chief Financial Officer, said:

Chief Executive Officer Daniel Chan reiterated the company’s commitment to increase market share in China’s e-commerce industry, especially in areas such as food, groceries and health products. He also told investors that the company is trying to increase its market presence in China’s smallest cities.

Mr. Zhang said Alibaba plans to invest in the growth of international business and the development of cutting-edge technology, and two areas are regarded as future profit drivers for Internet companies, and resources are also invested in retaining domestic users, which is the backbone of the business. Said.

Over the past few months, Mr. Zhang has delegated more power to various business units. To make them more agile When tackling competition. The company recently reorganized its e-commerce team and appointed a new chief financial officer.

Hangzhou based company Significantly lowered growth forecast for this term Barely a month ago. Sales in March are expected to increase from about 30% in May to 20% to 23% due to sluggish consumer spending and intensifying competition in China.

Still, some investors said they were more concerned about regulatory uncertainty than the company’s operational issues. John Freeman, vice president of equity research at CFRA Research, said the major risk of buying Alibaba shares is the delisting of Chinese companies from the United States given the U.S. Securities and Exchange Commission’s orders and the uncertainty of Chinese. Said that it could be. Authorities and their intentions.

China’s economic data released Wednesday showed retail sales (a substitute for consumption).November increased by 3.9% year-on-year, A drop from 4.9% growth last month.

Alibaba’s environmental sustainability goals revealed by Mr. Zhang come as tech companies around the world are trying. Take on more environmental responsibility..Company from

Apple Ltd

To

Microsoft Ltd

MSFT -0.48%

Announced commitment Reduce carbon dioxide emissions Within your organization and throughout your supply chain.

Significant decarbonization efforts often require companies to work with suppliers and manufacturers. Alibaba relies on the extensive web of manufacturers, logistics companies and other service providers. In addition to its carbon-neutral goal, Alibaba has also promised to reduce “carbon strength” (a measure of carbon emissions to earnings) by 2030 across the supply chain.

Alibaba’s planned actions include using more renewable energy in the data center and working with logistics providers to adopt electric vehicles. Alibaba Cloud is committed to enhancing cloud computing with 100% clean energy by 2030.

Amazon.com Ltd

I said that would happen last year Add a fleet of 100,000 electric delivery vehicles Drive to be carbon neutral by 2040.

Alibaba does not say how much capital it plans to invest to achieve these goals.

Online retail giants said they would target emissions from participants on the platform, such as consumers and merchants, with an initiative that rewards or encourages environmentally friendly behavior. Alibaba said its purpose is to reduce 1.5 gigatons of carbon emissions by 2035.

“We will leverage our unique influence as a platform operator to mobilize behavior and behavioral changes among consumers, merchants and partners in China and around the world,” said Zhang.

Alibaba will establish a new oversight body on environmental, social and governance issues, including a board-level sustainability committee chaired by independent director Jerry Yang, co-founder of Yahoo Inc.

Money is a challenge to climate change negotiations around the world. The WSJ will consider how the money will be spent and who will pay it, as economists have warned that limiting global warming to 1.5 degrees Celsius will cost much more than expected. Illustration: Preston Jesse / WSJ

Write to Jin Yang Jing.Yang@wsj.com And in Lizarin Liza.Lin@wsj.com

Copyright © 2021 DowJones & Company, Inc. all rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

Alibaba announces climate goals to reassure investors

Source link Alibaba announces climate goals to reassure investors

The post Alibaba announces climate goals to reassure investors appeared first on Eminetra.

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